Estimate the tax on dividend income in the UK, US, Germany and France. Dividends stack on top of your other income, so for the UK and US your earnings set the rate band.
Your dividends
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£
Dividends inside a Stocks & Shares ISA are tax-free and excluded here.
Taxable dividends£0
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£
Dividend tax due
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on — dividends · keep —
You keep –Tax –
Tax-free allowance
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Taxable dividends
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Effective rate
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After-tax dividends
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How the tax breaks down
Portion
Rate
Tax
Total
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Dividend tax at a glance — 2026/27
UK: £500 dividend allowance, then 10.75% (basic), 35.75% (higher), 39.35% (additional) — basic/higher rose 2% on 6 April 2026.
US: qualified dividends taxed at 0% / 15% / 20% by income (+ possible 3.8% NIIT); ordinary dividends taxed as income.
An investor with ~£50,000 of salary (about £37,430 taxable) takes £10,000 in dividends. The £500 allowance is used, and the rest lands in the higher-rate band.
Dividend allowance£500 @ 0%
Remaining £9,500 @ 35.75%£3,396
Dividend tax£3,396
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US: the 0% qualified-dividend band
With $40,000 of taxable income and $20,000 of qualified dividends, part is taxed at 0% before the 15% rate begins.
Dividends are profit a company pays out to shareholders, and they're taxed differently from salary in most places. The UK gives a small tax-free dividend allowance (£500) and then applies dedicated dividend rates that are lower than income tax rates. The US gives qualified dividends the favourable long-term capital gains rates. Germany and France apply a single flat rate to investment income.
Why your salary matters (UK & US)
Dividends sit on top of your other income, so your salary decides which band the dividends fall into. The same £10,000 of dividends costs a basic-rate UK taxpayer far less than a higher-rate one — which is why the calculator asks for your other taxable income.
£500 tax-free, then 10.75% (basic), 35.75% (higher), 39.35% (additional), stacked on top of your other income. The basic and higher rates each rose by 2 percentage points from 6 April 2026; the additional rate is unchanged.
How are US dividends taxed?
Qualified dividends at 0/15/20% by income; ordinary dividends as regular income. A 3.8% NIIT can apply at higher incomes.
Are dividends taxed before or after salary?
After — they're the top slice of income, so your other earnings set the dividend band.
Do ISAs / tax-advantaged accounts change this?
Yes. Dividends inside a UK ISA or a US Roth/401(k), for example, are sheltered. This calculator assumes ordinary taxable holdings.
Estimate only. UK uses the £500 allowance and 2026/27 dividend rates; US assumes qualified dividends at 2025 single-filer thresholds. Germany/France use flat investment-income rates. Excludes tax-sheltered accounts, withholding tax on foreign dividends and treaty relief. Verify with the official authority. Not tax advice.